Which of the Following Statements About Earthquakes Is NOT True

question 12

Multiple Choice

Which of the following statements about earthquakes is NOT true?

• A) An earthquake's focus is the place within the Earth where rocks shift in response to stress.
• B) Aftershocks are caused by continued reverberation of rock after a major earthquake.
• C) After an earthquake, rocks along a fault temporarily lock in place and resist further movement, causing earthquakes to be sporadic rather than continuous.
• D) An earthquake's epicenter is in the exact center of the fault that causes the earthquake.

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Definitions:

Long Hedges

Occur when futures contracts are bought in anticipation of (or to guard against) price increases.

Short Hedges

Occur when futures contracts are sold to guard against price declines.

T-bills

Treasury bills, short-term debt obligations issued by the government with a maturity of less than a year, considered risk-free.

Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a set price within a specific period.